The ultimate goal of a business is to sell the product on offer to the TG (target group) and earn money. Having said that, we mean, your product doesn’t appeal to all and sundry. Therefore, you must know how to reach your TG and make them purchase so that each sale can effectively contribute to the bottom line of your business. This may sound nothing new to you. But, what is important in today’s business is to stay innovative so that your customers remain loyal to you at the first place and at the same time, you are able to attract new ones. Since resources on earth are limited, you have to work on things like retail planogram in sync with the retail revolution worldwide.
What is retail planogram?
This is indeed a good question if you have heard this for the first time. Well, a planogram is essentially a drawing depicting the array of products. Therefore, a retail planogram may mean a systematic display of products at a retail store with a view to maximising its’ visibility from the viewpoint of a buyer. However, the challenge here is to maintain facings of the SKUs (stock-keeping units) that, in turn, will maximise the sale of those units to the TG.
Therefore, every retail unit has unique SKUs. You understand this better after visiting a local store and another megastore one after another. In other words, the idea behind a planogram is to place and promote some of the products that will fetch maximum revenue for an outlet through and with the help of its’ increased sales. After all, a strategy is all about a marriage between the desire and the destination. Here, desire is to earn revenue whereas the destination is increased sales by creating new customers while retaining the old ones.
You know what, in every business, attracting new customers is a costlier proposition compared to retaining the existing ones. Therefore, a planogram of a retail unit works like a strategical merchandising weapon for the success of it.
Key benefits of a retail planogram:
- Optimum space utilisation per strategic selling unit:In a retail unit, there may be one hundred products, for instance, that are sold regularly. Interestingly, out of those hundred products, there would be some products that are sold more over others. The job of a planogram is, therefore, to optimise space for those vis-a-vis others all the while promoting new ones.
- Improved stock-keeping:It helps to improve stock-keeping thereby optimises sales and revenue.
- Capital adequacy:With the help of optimised stock, capital adequacy is maintained at ease. This, in turn, makes capital available for further investment in more productive pockets of the business. Thus, revenue earning and growth in business are optimised.
- Easy stock replenishment:It is also helpful to stock replenishment by the staff members.
Like the five fingers of your hand, your retail planogram must be different from that of your competition in your niche market with a view to taking your business to a new height. After all, it’s your marketing skill that will eventually lead you to a grand success here.